What distinguishes a closed-end fund from an open-end fund?

1. An open-end fund sells shares on a continuous basis and redeems them back from investors. 2. A closed-end fund does the opposite: it sells a fixed number of shares once, in an initial public offering. 3. Those shares then trade on a secondary market such as an exchange rather than being redeemed by the fund. 4. Continuous offering and daily redemption at NAV both describe the open-end structure instead. 5. A fixed termination date is the mark of a unit investment trust, not of a closed-end fund. _Source: US SEC Office of Investor Education and Advocacy, "Mutual Funds and ETFs: A Guide for Investors", section Glossary of Key Mutual Fund and ETF Terms_